Mahanagar Gas Ltd. has reported that. effectively from July 8, 2024, commuters in Mumbai and households using Compressed Natural Gas Chassis and Domestic Piped Natural Gas would have to pay more. The revision comes in the wake of increased gas costs. The move indicates broad challenges in the energy sector as consumers across Mumbai feel pain in their pockets.
It has enhanced CNG prices by ₹1.50 per kilogram and PNG prices by ₹1 per standard cubic meter with effect from midnight of July 8. The all-inclusive revised prices are ₹75 per kg for CNG and ₹48 per SCM for Domestic PNG.
It attributed the price revision to additional market-priced natural gas that needed sourcing, with specific importation of RLNG. Their domestic gas allocation fell short of their needs, and demand in the CNG and Domestic PNG segments is increasingly escalating, compelling MGL to resort to sourcing costlier imported gas to meet consumer needs.
In a press release, MGL pointed out that despite these revisions, CNG continues to be an economical proposition compared with conventional liquid fuels, providing a saving in the order of about 50 percent when compared with petrol and 17 percent when compared with diesel at present Mumbai prices. Similarly, Domestic PNG continues to give its consumers unmatched convenience, safety, reliability, and environment-friendliness.
The recent price hikes by MGL reflect broader trends within the sector, in which changes in international gas markets and domestic supply challenges are impacting strategies at city gas distributors. This move is thus in line with similar actions by other regional players like Gujarat Gas, which has just hiked industrial natural gas prices in the Morbi region of Gujarat.
This price-revision move on the part of MGL thus furthers its sincerity in making sure that gas supplies are not disrupted, while keeping a tab on the impact of escalating costs on consumers. This step will help in maintaining operational efficiency and service reliability in an emerging market scenario.
This is an era of cost adjustment for CNG and PNG users in Mumbai. The new price structure for MGL comes into effect at a time when there are continuous changes in the economics of energy. Given this backdrop, MGL would survive with enhanced customer service quality and resilience in its operations which would further strengthen its position as a dependable energy solution provider to urban consumers.
While this may command a better price in the short run, MGL has based its strategic sourcing decisions on Members’ choices to maintain excellence in service delivery and supplies in a dynamic framework of ever-growing Mumbai energy requirements.